VJESI/LaMotta Leadership Survey #6
8/13/02 - 8/19/02
Have Business Leaders Lost Their Moral Compass?
By Victoria James and Connie LaMotta

Stories of corporate impropriety have led many executives to question whether competition has tempted some highly successful people to cross the line of ethical business practices.

While 58% of the respondents to the VJESI/LaMotta Leadership Survey said they felt business leaders had lost or misplaced their "moral compass," only 1/3 of them felt that there were very serious or extremely serious ethical issues in the direct marketing business. The most egregious issue cited was the low level of integrity in senior executives. The next concern was about misleading communications regarding business performance to internal and external audiences. Alternately, nearly half of the respondents stated they thought that announcing misleading financial information and utilizing unethical financial reporting and accounting practices were NOT serious problems in the direct marketing business.

It was refreshing to find that 81% of the respondents admired someone in the business because of their ethical qualities. Nearly 40 qualities were named with high marks given to leading by example ethically; making decisions based on the long term benefits for the company and treating customer/employees properly. The personal characteristics admired included, honesty, candor, trustworthiness, integrity, impartiality and forthrightness.

72% felt that when business decision-making is linked to unethical conduct, it negatively affects the bottom line. Some of the toughest ethical business decisions that dm executives are dealing with are the use of data and the truthfulness of advertising copy. 19% were challenged to find an ethical position in what is promised in advertising and promotions to customers about products or services. Doing the right thing when it means your business will incur a short-term loss also challenged 19%. And an additional 17% were challenged by how customer data is used in the direct marketing business. Other issues included compensation questions (12%) and issues of non-discrimination (11%).

In a search for some solutions to these challenges, 66% of the respondents felt that businesses should have a written code of ethics. And, at the same time, most respondents (62%) felt that setting the moral and ethical culture of an organization is the responsibility of the CEO (22%), the Board of Directors (18%), the Senior Management Team (22%) with 31% stating that it was everyone in the organizations responsibility.

The VJESI/LaMotta Leadership Survey is designed to gather the collective wisdom of the direct marketing leadership in addressing business challenges in today's unprecedented environment.

If you want to opt-in and be part of one of the upcoming VJESI/LaMotta Leadership panels, send an email to vjames@victoriajames.com with OPT IN SURVEY in the subject line. All answers are tabulated in the aggregate and analyzed to produce a big picture.

VICTORIA JAMES is president of Victoria James Executive Search Inc., Stamford, CT, a management search firm focused on the direct marketing business.

CONNIE LaMOTTA is president of LaMotta Strategic Communications, Inc., Upper Nyack, New York, an organizational reputation and image consultant, specializing in the direct marketing business.

Detailed version of the survey results are at www.victoriajames.com/SurveySays/survey6results.html.

Thanks for your participation!